How lawsuits affect your ability to consolidate with a debt management program.
Can You Use Debt Consolidatio to Stop Collector that Sues You?
Consolidated Credit’s President Gary Herman explains how and why lawsuits over unpaid debt may not affect your ability to consolidate if you enroll in a debt management program. Even if you’re facing a civil suit, you can still use a debt management program to eliminate your debt.
First, you need to be clear that they’re actually suing you. Did you receive court documents or did someone just say to you that they may consider legal action as a next step?
If a debt collector is seeking legal action, we can still contact them on your behalf and see if they’re willing to take payments. There’s nothing we can do to stop the legal action. They just want someone to contact them and tell them how much money the client can afford and set up payments.
If they’re saying they’re thinking about seeking legal action or you’ve got a pending date, either way you can still join the debt management program. We’ll still contact your creditors. We can’t offer any legal advice and we can’t stop the court date, but we can still set up payments that may stick straight through your court date.
Always keep in mind that enrolling in a debt management program means that a certified credit counseling team is acting and working on your behalf in negotiating with your creditors. Essentially, you can’t enroll in the program unless your creditors agree to the adjusted payment schedule you set up with your credit counselor.
Talk to a certified credit counselor now for free debt evaluation to discuss your best options for debt relief.